Tamron is Asking 40% of its Japanese Factory Workforce to Voluntarily Retire: Report

DeadJohn · 11-11-2020, 10:47 AM

Increasing factory automation, long-term shrinkage of camera sales due to smartphones, and covid-19. An earlier version said 20% but it looks like the corrected number is 40%. That's a large staff cut.

Tamron is Asking 40% of its Japanese Factory Workforce to Voluntarily Retire: Report

**ramseybuckeye** · 11-11-2020, 11:07 AM

That's a big chunk of employees. A very good way to do it for the employees. I wonder if we will hear how many take the offer. That's a big drop in sales, but i imagine that most of the industry is in that drop range. Didn't Tamron have several new lenses come out early this year and late last year? If they had geared up production they could be sitting on a big inventory with low cash flow. Timing can be so critical and nobody could have predicted the coronavirus effect.

zapp · 11-11-2020, 11:18 AM

Seems like they want to keep the employees with special skills though. Support the industry buy lenses.

normhead · 11-11-2020, 11:56 AM - **5 Likes**

Originally posted by zapp

Seems like they want to keep the employees with special skills though. Support the industry buy lenses.

Support the companies that support Pentax, buy lenses. Pentax lenses that are Tamron are the DFA 15-30, DFA 24-70, DFA 70-210 and I believe though I'm open to correction the DA 18-270. Those will support both Tamron and Pentax.

shyrsio · 11-11-2020, 01:24 PM - **1 Like**

Its really sad to hear this. Tamron deserves great respect as a the 3rd party lens maker. And their lenses have some of the best quality/price compromise. Lets hope they will make it through these awful times!

**mlt** · 11-11-2020, 01:38 PM - **1 Like**

It will be interesting to see if or how this will effect any future collaboration or rebranding with Pentax.

**PJ1** · 11-11-2020, 01:43 PM - **2 Likes**

Close cooperation could be in the interest of both Tamron and Pentax.

**Des** · 11-11-2020, 02:50 PM

It's a shame to see any stalwart of photography struggling. Tamron seemed to be doing well in a difficult market too: What Three Lenses Is Tamron About to Launch and Why Is the Company Doing so Well? | Fstoppers

It's a pretty grim outlook for photography businesses, with the collapse of travel and tourism around the world. If a company fails it will mean a huge loss of specialist expertise and capital investment in design and manufacturing. We are all the poorer for that. Let's hope Tamron (and Sigma and Nikon and all the others) can ride it through until things pick up.

dave_roe · 11-11-2020, 03:06 PM

With travel for pleasure on hold it has to be tough for any company but more so on those dealing with photography. it is something you do not have to buy. Hopefully they will realize enough taking retirement to keep them stable. I have several of their lenses and they all perform well on what ever Pentax body I put them on. I would hate to lose them as they make a good partner with Pentax.

automorphism · 11-11-2020, 03:32 PM

I love my Tamron 150-600 G2. People like Tamron and Sigma make some great lenses and I hope they keep it up. It's sad to hear about the workers at Tamron.

**clackers** · 11-11-2020, 04:13 PM - **1 Like**

"At this point in 2020, Tamron is expecting its income for the year to be down 58% from 2019"

Astounding. What a brutal thing covid has been to an industry already in steep decline.

Mistral75 · 11-11-2020, 04:21 PM - **1 Like**

Originally posted by clackers

"At this point in 2020, Tamron is expecting its income for the year to be down 58% from 2019"

Astounding. What a brutal thing covid has been to an industry already in steep decline.

It's their net income (profit after tax) that is forecast to be down 58%, not their revenue.

Tamron's consolidated revenue was down 15.4% in Q1, down 28% in Q2 and down 25.5% in Q3.

**BigMackCam** · 11-11-2020, 04:35 PM

Originally posted by Mistral75

It's their net income (profit after tax) that is forecast to be down 58%, not their revenue.

Tamron's consolidated revenue was down 15.4% in Q1, down 28% in Q2 and down 25.5% in Q3.

Interesting... Would you happen to know what caused such a huge drop in net income when revenue wasn't nearly so badly affected?

Mistral75 · 11-11-2020, 05:02 PM

Nothing unusual here. Fixed costs make a decrease in revenue trigger a much bigger drop (in percentage) in operating income and net income.

In some cases a decline in revenue can cause a company to turn in a loss instead of a profit.

Mistral75 · 11-11-2020, 05:20 PM - **1 Like**

A numerical example to illustrate the above.

Revenue = 100
Variable costs = 40 (40%)
Fixed costs = 40
Operating income = 20
Financial expenses = 5
Profit before tax = 15
Tax = 5 (33.33%)
Net income = 10

Revenue = 80
Variable costs = 40% = 32
Fixed costs = 40
Operating income = 8
Financial expenses = 5
Profit before tax = 3
Tax = 33.33% = 1
Net income = 2

Revenue: from 100 to 80 = down 20%
Operating income: from 20 to 8 = down 60%
Net income: from 10 to 2 = down 80%

11-11-2020, 10:47 AM	#1
DeadJohn Pentaxian Join Date: Jan 2011 Location: New York Posts: 4,833	Tamron is Asking 40% of its Japanese Factory Workforce to Voluntarily Retire: Report Increasing factory automation, long-term shrinkage of camera sales due to smartphones, and covid-19. An earlier version said 20% but it looks like the corrected number is 40%. That's a large staff cut. Tamron is Asking 40% of its Japanese Factory Workforce to Voluntarily Retire: Report

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11-11-2020, 11:07 AM	#2
ramseybuckeye Site Supporter Join Date: Apr 2009 Location: Hampstead, NC Photos: Gallery Posts: 17,288	That's a big chunk of employees. A very good way to do it for the employees. I wonder if we will hear how many take the offer. That's a big drop in sales, but i imagine that most of the industry is in that drop range. Didn't Tamron have several new lenses come out early this year and late last year? If they had geared up production they could be sitting on a big inventory with low cash flow. Timing can be so critical and nobody could have predicted the coronavirus effect.

11-11-2020, 11:18 AM	#3
zapp Pentaxian Join Date: Jul 2011 Posts: 2,385	Seems like they want to keep the employees with special skills though. Support the industry buy lenses.

11-11-2020, 11:56 AM - 5 Likes	#4
normhead Pentaxian Join Date: Jun 2007 Location: Near Algonquin Park Photos: Gallery \| Albums Posts: 40,450	Originally posted by zapp Seems like they want to keep the employees with special skills though. Support the industry buy lenses. Support the companies that support Pentax, buy lenses. Pentax lenses that are Tamron are the DFA 15-30, DFA 24-70, DFA 70-210 and I believe though I'm open to correction the DA 18-270. Those will support both Tamron and Pentax.

11-11-2020, 01:24 PM - 1 Like	#5
shyrsio Pentaxian Join Date: Apr 2016 Location: Tirana Posts: 780	Its really sad to hear this. Tamron deserves great respect as a the 3rd party lens maker. And their lenses have some of the best quality/price compromise. Lets hope they will make it through these awful times!

11-11-2020, 01:38 PM - 1 Like	#6
mlt Site Supporter Join Date: Dec 2007 Posts: 1,159	It will be interesting to see if or how this will effect any future collaboration or rebranding with Pentax.

11-11-2020, 01:43 PM - 2 Likes	#7
PJ1 Loyal Site Supporter Join Date: Jul 2012 Location: Toowoomba, Australia Photos: Gallery \| Albums Posts: 5,481	Close cooperation could be in the interest of both Tamron and Pentax.

11-11-2020, 02:50 PM	#8
Des Loyal Site Supporter Join Date: Jan 2014 Location: Victoria Australia Photos: Albums Posts: 6,421	It's a shame to see any stalwart of photography struggling. Tamron seemed to be doing well in a difficult market too: What Three Lenses Is Tamron About to Launch and Why Is the Company Doing so Well? \| Fstoppers It's a pretty grim outlook for photography businesses, with the collapse of travel and tourism around the world. If a company fails it will mean a huge loss of specialist expertise and capital investment in design and manufacturing. We are all the poorer for that. Let's hope Tamron (and Sigma and Nikon and all the others) can ride it through until things pick up.

11-11-2020, 03:06 PM	#9
dave_roe Moderator Loyal Site Supporter Join Date: Jun 2008 Location: Rome, Italy Photos: Albums Posts: 584	With travel for pleasure on hold it has to be tough for any company but more so on those dealing with photography. it is something you do not have to buy. Hopefully they will realize enough taking retirement to keep them stable. I have several of their lenses and they all perform well on what ever Pentax body I put them on. I would hate to lose them as they make a good partner with Pentax.

11-11-2020, 03:32 PM	#10
automorphism Veteran Member Join Date: Jun 2015 Location: Ontario, Canada Photos: Albums Posts: 791	I love my Tamron 150-600 G2. People like Tamron and Sigma make some great lenses and I hope they keep it up. It's sad to hear about the workers at Tamron.

11-11-2020, 04:13 PM - 1 Like	#11
clackers Otis Memorial Pentaxian Join Date: Jul 2013 Location: Melbourne Photos: Albums Posts: 16,397	"At this point in 2020, Tamron is expecting its income for the year to be down 58% from 2019" Astounding. What a brutal thing covid has been to an industry already in steep decline.

11-11-2020, 04:21 PM - 1 Like	#12
Mistral75 Pentaxian Join Date: Feb 2009 Location: Paris, France Posts: 7,526	Originally posted by clackers "At this point in 2020, Tamron is expecting its income for the year to be down 58% from 2019" Astounding. What a brutal thing covid has been to an industry already in steep decline. It's their net income (profit after tax) that is forecast to be down 58%, not their revenue. Tamron's consolidated revenue was down 15.4% in Q1, down 28% in Q2 and down 25.5% in Q3.

11-11-2020, 04:35 PM	#13
BigMackCam Digitiser of Film Join Date: Mar 2010 Location: North East of England Posts: 20,645	Originally posted by Mistral75 It's their net income (profit after tax) that is forecast to be down 58%, not their revenue. Tamron's consolidated revenue was down 15.4% in Q1, down 28% in Q2 and down 25.5% in Q3. Interesting... Would you happen to know what caused such a huge drop in net income when revenue wasn't nearly so badly affected?

11-11-2020, 05:02 PM	#14
Mistral75 Pentaxian Join Date: Feb 2009 Location: Paris, France Posts: 7,526	Nothing unusual here. Fixed costs make a decrease in revenue trigger a much bigger drop (in percentage) in operating income and net income. In some cases a decline in revenue can cause a company to turn in a loss instead of a profit.

11-11-2020, 05:20 PM - 1 Like	#15
Mistral75 Pentaxian Join Date: Feb 2009 Location: Paris, France Posts: 7,526	A numerical example to illustrate the above. Revenue = 100 Variable costs = 40 (40%) Fixed costs = 40 Operating income = 20 Financial expenses = 5 Profit before tax = 15 Tax = 5 (33.33%) Net income = 10 Revenue = 80 Variable costs = 40% = 32 Fixed costs = 40 Operating income = 8 Financial expenses = 5 Profit before tax = 3 Tax = 33.33% = 1 Net income = 2 Revenue: from 100 to 80 = down 20% Operating income: from 20 to 8 = down 60% Net income: from 10 to 2 = down 80%

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